Blue Ridge Development

East Tennessee's most trusted real estate companies.

Knoxville Industries: Slowing or Growing? Read to Find Out.

One Lakeside Centre, a Class A, 62,264 SF office building developed by Blue Ridge Development in 2002, now occupied by Greater Sum Ventures.

While the Covid-19 pandemic led to a trend of many corporate tenants downsizing their office space footprint, the Knoxville, Tennessee, market benefitted from the growth of companies in many industries. According to Bill Lewis with Livability, five industries in Knoxville are “poised for growth and job creation,” including:

  1. Health, largely thanks to synergies between the University of Tennessee and Oak Ridge National Laboratory
  2. Information Technology, which benefits from employees who have found Knoxville to be a great place to live for remote work
  3. Entertainment, including Knoxville companies, such as RIVR Media and Warner Brothers Discovery, creating widely known television shows on HGTV, TLC, Food Network, Animal Planet, and others    
  4. Sustainability, due to Tennessee Valley Authority’s presence in Knoxville and designation of the City as “a Platinum Valley Sustainable Community.” Another company contributing to sustainability growth, The Electric Power Research Institute (EPRI’s), building was developed by Blue Ridge Development in April of 2001.
  5. Finance and Investing, including the company Greater Sum Ventures, which occupies the Blue Ridge developed property One Lakeside Centre, and is known for its ministry-focused software solutions.

Knoxville has many leaders to thank for its tremendous growth, including those at the University of Tennessee, Oak Ridge National Laboratory, and the Knoxville Chamber, with its emphasis on supporting entrepreneurs and the area’s urban wilderness.

The EPRI PEAC Building is a 40,000 square foot multi-tenant office/ warehouse facility located in Corridor Park at 803 Corridor Park Drive in Knoxville, Tennessee. The split-face block and storefront facility was completed in April of 2001.

Blue Ridge Realty and Development are proud to touch all areas of the Knoxville economy through our Class A office space, specifically designed for corporate office tenants, our subdivisions developed by Blue Ridge Development, which make the ideal location for remote work, and our newly underway Marina & RV Resort, which will soon contribute to the East Tennessee recreation scene in Rockwood, TN.

Residential RE is HOT – How’s Commercial?

Knoxville Business Magazine front cover featuring an article on the commercial real estate market in Knoxville.
Knoxville Business Magazine front cover featuring an article on the commercial real estate market in Knoxville.

One thing is for certain, the residential real estate market is HOT, and Knoxville is no exception. Are you curious how commercial real estate is faring? Recently, Knoxville Business Magazine featured an article interviewing Blue Ridge Realty President Louise R. Frazier, CPM®, CCIM, SIOR on her take on the competitive nature of Knoxville’s unique, local market. Check out her thoughts, as well as those of other women in the business in this article by KnoxNews.

Louise brings over 30 years of experience to Blue Ridge Realty, with a focus in the office market of the commercial real estate industry. In these changing times, it is important to stay up-to-date on the latest market trends. Considerations among companies currently relocating and growing in Knoxville are how much square footage to take, how to layout this square footage, and how to balance employees’ desires for flexibility with companies’ desires for increased office presence. Sound familiar? Blue Ridge Realty is helping companies make these decisions every day. Contact us to help your company makes it next move.

Does anything about the current state of the commercial real estate market in Knoxville surprise you? Let us know in the comments.

Blue Ridge Realty, Inc. President Louise R. Frazier weighs-in with her thoughts on the commercial real estate market in Knoxville.
Blue Ridge Realty, Inc. President Louise R. Frazier weighs-in with her thoughts on the commercial real estate market in Knoxville.

Investors Enthusiastic About Real Estate in Small and Mid-Sized Cities

domestic migration in these top markets attracting real estate investors
Knoxville ranks #10 for domestic migration in 2020 among small and mid-sized cities.

Small and mid-sized cities (defined as those with populations less than 1M people) are seeing population growth in excess of 5-year averages that indicate the pandemic is the driving cause, Costar Analytics team David Kahn, Jessica Morin, and Same Tenenbaum reports. Population changes are catching the attention of commercial real estate investors in these cities.

Who is moving?

It’s not all retirees headed south. “‘Cities are adding jobs in the medical, retail, and industrial sectors to support increased consumer spending levels,'” according to Brian Alford. Tourism is another factor driving this increase in consumer spending and bringing wage earners to these areas.

Where are they moving?

Commonalities between the small and mid-sized cities seeing this growth are their affordability, lower taxes, better weather, and job opportunities. In fact, 14 of these top 20 fastest growing small and mid-sized cities are located in the southeast, with 8 of them located in Florida.

What does the pandemic have to do with it?

The lack of large institutions and universities, air and transit accessibility, and major corporations are typical downsides of these smaller cities, but thanks to the pandemic and the rise in remote work, these downsides are mitigated in favor of a lower population density.

Is this a good thing?

Yes. Many of these cities are solely dependent on domestic net migration, due to negative population growth when looking solely at deaths outpacing births and international migration.

What does this mean for investors?

While commercial real estate investors have been enthusiastic surrounding these markets with often higher returns, they are still considered risky due to a lack of liquidity driven by size, inaccessibility, and unfamiliarity. Blue Ridge Realty specializes in commercial real estate in Knoxville, TN, the city ranking #10 for domestic migration and #14 for nominal population growth. Contact us today to find out about commercial real estate investment opportunities in the area.

Knoxville ranks #14 in nominal population growth from 2019-2020 attractive to investors
Knoxville ranks #14 for nominal population growth from 2019-2020 among small and mid-sized cities.

All Roads Lead to Knoxville

welcome to tennessee knoxville in-bound move ranking number 6

Watch out Nashville! Knoxville is seeing its own share of growth. A recent Nashville Business Journal article cites an analysis by United Van Lines. According to the article, 67% of the moves handled by the company were for households arriving in Knoxville. Only 33% of moves were for households leaving Knoxville. This earned Knoxville the rank of top 6 metro area in the nation by inbound moves, which is slightly above Nashville’s top 9 rating.

As a whole, Tennessee ranked top 7 by in-bound moves, its first time in the top 10 ranking since 2016. Covid-19 may be partly to thank for this trend. Reasons cited for moving include “desire to be closer to family,” “seeking a lifestyle change,” and “the newfound ability to work remotely.” However, the influx of people may also be contributing to the high number of cases in the region.

Unsurprisingly, the cities with the highest outbound moves were located in New York City, Chicago, and New Jersey. Residents in these areas are seeking more affordable options and less crowded conditions.

As demand for housing grows and more people are working from home, residential and multifamily real estate markets are doing well. Despite the negative impacts of the pandemic, a stable local economy and low interest rates make it a great time to buy in other sectors of the real estate industry. Learn more about our residential developments, retail spaces, and office real estate. Contact us today.

Knoxville, Tennessee Named “Boutique Market” for Investment

Since the 1982 World’s Fair, there has been a push among city leaders to revive Knoxville’s downtown core. Several efforts helped jumpstart this revival, including the development of Market Square, the Knoxville Convention Center, and the expansion of housing options downtown. Finally, it appears the city’s efforts have caught on. Knoxville was named one of the Urban Land Institute’s “boutique markets” in its annual “Emerging Trends in Real Estate” report. Other cities earning the title include Greenville, South Carolina; Richmond, Virginia; Boise, Idaho; Omaha, Nebraska; Portland, Maine; and Des Moines, Iowa.

So, what exactly earned Knoxville this distinction? Knoxville’s ability to weather the COVID-19 pandemic is partly to thank, along with a low cost of living (home prices $80,000 below the national average) and cost of business (10% below the national average). Other lifestyle factors include natural amenities and diversity in leisure and cultural activities.

Several downtown projects also aided Knoxville in the achievement of this title, including the conversion of the former state supreme court building to a boutique hotel. Other projects still in the works for the city include a proposed downtown minor league baseball stadium. These projects take advantage of the “opportunity zone” that covers downtown Knoxville, creating tax advantages for investors.

Established businesses driving the economy in the city include the University of Tennessee’s main campus, the headquarters of Pilot Flying J, Discovery’s HGTV, Regal Entertainment Group, Tennessee Valley Authority, and the Brunswick Boat Group.  

Are you looking to invest in the Knoxville area? Our company specializes in both commercial and residential real estate development, as well as helping companies find space that meets their needs. Contact us today to see how we can help.